Cross-strait exchange to bring more good than harm: CNFI
By Ted Chen, The China PostTAIPEI, Taiwan -- Following a cross-strait conference set in Xiamen, the Chinese National Federation of Industries (CNFI, 全國工業總會) yesterday express its staunch support for greater collaboration between Taiwan and China, saying that the trend is inevitable, and will bring more good than harm.
September 9, 2013, 12:09 am TWN
Amid growing public scrutiny over the inking of a cross-strait service industries trade pact earlier this year, CNFI Honorary Chairman Preston W. Chen (陳武雄) yesterday stated that the move may stimulate greater competency among Taiwan's service-oriented enterprises. According to Chen, the persistence of companies that rely on protectionist policies may harm the interest of Taiwan's consumers, adding that heightened competition from mainland China may stimulate higher standards of services, to the benefit of all consumers.
Chen also said that developments over the past two decades have proven that the westward movement of Taiwanese businesses was a sound decision, while saying that no trade pacts benefit only one party. “I am anticipating with delight the arrival of PRC investments in Taiwan,” said Chen.
According to statistics from the PRC, as of July this year, regulators in China have approved nearly 89,000 investment plans, totaling US$58.466 billion, while with the inclusion of foreign direct investment through a third country, Taiwanese businesses have accumulated investment outflows of US$110 billion to China.
However, amid rising labor costs and other concerns observed in China, Chen stated that Taiwanese businesses must be able to continue innovating and render higher standards of goods and services provided in the China market. If innovation is not possible, Taiwanese businesses can still benefit from expanding into China's vast markets in the mid-west regions.
Chen emphasized that Taiwanese businesses must evolve their approach in investing in China, as the profitability of contract manufacturing has begun to lose its luster. Chen advised Taiwanese businesses to progress toward developing a leading edge in quality, research, and greater scale of economies in their mainland operations.